During Today’s webinar Mike Chupka was able to use the PowerOptions Portfolio tools to quickly analyze some potential Income Method #1 trades for our virtual Plain Vanilla account. Using the powerful tools we quickly analyzed the pros and cons of virtually applying Income Method #1 to a few positions, but decided that Ross Stores had the best opportunity.
By virtually selling the 47.50 call (remember, I am not putting up real money in the Plain Vanilla portfolio as we are only using IM #1…I put my real money into the Fission Portfolio where I apply all 10 Income Methods) we have reduced the risk form 5.4% down to 1.9%.
Let’s see how the Ross Stores virtual position plays out through October. Please join us on Thursday where we might show one or two other Income Method #1 trades in the Plain Vanilla account, or we might discuss the AAPL and LFC positions that have IM #1 open with September calls…hey, we even have a virtual Plain Vanilla trade where the put is expiring in September and the position could be closed right now for an 11% gain.